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OF QUOTAS. IT WOULD OFFER A MARGIN OF PROTECTION THAT WAS BOTH
STABLE AND PREDICTABLE, SO ENABLING THE INDUSTRY TO PLAN AHEAD WITH CONFIDENCE. A CONTINUATION OF QUOTAS, ON THE OTHER HAND, WOULD NOT GIVE THE INDUSTRY THE CONFIDENCE OR THE INCENTIVE TO UNDERTAKE THE INVESTMENT NEEDED TO MAKE IT MORE COMPETITIVE. 6. IMPORTS OF COTTON TEXTILES INTO BRITAIN, THE GREATER PART OF WHICH ENTER DUTY-FREE, HAVE NOW REACHED 53 PER CENT OF TOTAL DOMESTIC CONSUMPTION. THIS IS A FAR HIGHER PROPORTION THAN IN
ANY OTHER MAJOR DEVELOPED COUNTRY. IN THESE CIRCUMSTANCES WE HAVE THE ALTERNATIVES OF RE-NEGOTIATING THE PRESENT UNSATISFACTORY QUOTA ARRANGEMENTS, OR ADOPTING A TARIFF WHICH WOULD BE BROADLY IN LINE WITH THOSE OF OTHER DEVELOPED COUNTRIES. THE GOVERNMENT HAVE DECIDED THAT THE RIGHT COURSE IS TO INTRODUCE, AS FROM 1ST JANUARY, 1972, A TARIFF ON IMPORTS FROM THE COMMONWEALTH PREFERENCE AREA ON THE LINES PROPOSED BY THE TEXTILE COUNCIL. FROM THAT DATE THE EXISTING GENERAL QUOTA SYSTEM WOULD BE TERMINATED: AND THE GOVERNMENT WOULD CONSIDER THE USE OF QUOTAS ONLY ON PARTICULAR PRODUCTS UNDER THE LONG TERM COTTON ARRANGEMENT OF THE GAT T, AND ONLY IF TOTAL IMPORTS OF COTTON TEXTILES ROSE SIGNIFICANTLY ABOVE THE PRESENT LEVEL AND CAUSED DISRUPTION TO THE MARKET IN THOSE PARTICULAR PRODUCTS. THESE DECISIONS WOULD, OF COURSE, BE SUBJECT TO ANY MODIFICATIONS THAT MIGHT BE REQUIRED IF WE JOINED THE E.E.C.
7. IN REACHING THIS DECISION I HAVE TAKEN ACCOUNT OF THE FACT THAT A NUMBER OF COUNTRIES IN THE COMMONWEALTH HAVE RIGHTS TO DUTY-FREE ENTRY INTO THE U.K. MARKET: AND I SHALL NOW INITIATE THE NECESSARY DISCUSSIONS WITH THE GOVERNMENTS CONCERNED WITH A VIEW TO SECURING THEIR ACCEPTANCE OF OUR DECISION. I AM EQUALLY, CONSCIOUS, ON THE OTHER HAND, THAT COTTON TEXTILES, HAVE LONG
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